How a debit card differs from a credit card: main points. What types of bank cards exist? What types of cards do banks issue?

A bank card is the most convenient, practical and reliable payment instrument that has become an integral part of the life of a modern person. For many users, it not only gives access to their bank account, but also gives many opportunities in the form of discounts, bonuses and other privileges. Let's look at what a bank card is and what types there are.

Description

A bank card is a personal payment instrument that gives its owner access to his bank account, debit or credit. With its help, you can make non-cash payments for goods and services, including on the Internet, and withdraw cash from bank tellers or ATMs.

Bank cards appeared in human life not so long ago, only 60 years ago, today they are used all over the world and are gradually replacing cash. By the way, before the advent of “plastic”, the system of non-cash payments existed in the form of check books, which today has completely become history.

A plastic product from any issuing bank is subject to a number of requirements, first of all, the size according to the ISO 7810 ID-1 standard, namely width - 86 mm, length - 54 mm, thickness up to 1 mm, corner radius - 3.18 mm.

Advantages

Compared to cash, cards provide their owner with a number of advantages:

your money is reliably protected, because the funds are stored in a bank account, if you lose the “plastic”, then access to the account can be blocked, that is, the money is not on the card, but in the bank, which can be more reliable;
convenient use, that is, when paying for goods and services, neither the cashier nor the buyer can make mistakes in calculations, for example, give the wrong change;
The advantage abroad is that money stored on the card does not need to be declared, which cannot be said about cash;
income on debit accounts, most financial and credit organizations offer a service such as cash back, that is, this is money that is returned to the account from each purchase;
finally, it is much easier for plastic owners to control their expenses, and therefore regulate the family budget; at any time, the client can request an extract report, completely free of charge.

Types of plastic

A payment card is just a tool or a key to your bank account or your bank account. In the first case, the card is debit, that is, the user spends only his own funds, in the second, the card holder uses credit.

All bank cards are divided into several types according to the type of payment:

debit – with own funds in the account;
credit card – payments on it are carried out using a loan, the limit of which is set by the bank;
prepaid is “plastic”, with a fixed amount on the account, unlike all other products, it is not issued, but purchased from the issuer;
overdraft – this is a product with an allowed overdraft of funds on the client’s account.

Not long ago, banks began to offer clients completely the new product is a virtual card; unlike real “plastic”, it does not have a physical medium. This product is useful for those who make purchases through online stores. The bank issues only the details to the client.

Appearance of a bank card

Appearance

So, what does the card look like, its design and the main elements on the front side:

last name and first name of the holder in Latin letters;
a number of 12 digits, but there may be 18 or 19 depending on the issuing bank;
logo of the payment system that serves it, for example, Visa or MasterCard;
microchip for additional protection;
logo of the issuing bank;
“plastic” status, for example, standard, gold or platinum;
expiration date, month and year.

On the reverse side:

logo of the issuing bank;
magnetic stripe;
owner's signature;
CVV2/CVC2 code for additional protection of settlement transactions on Internet resources.

Perhaps not everyone knows, but the issuance of plastic bank cards is regulated by the Regulations of the Central Bank of the Russian Federation “On the issuance of bank cards and on transactions performed using payment cards.”

How the calculation occurs: mechanism

We all quite often use bank payment cards to pay for goods or services, but not everyone knows exactly how the settlement mechanism occurs between the issuing bank and the seller.

Consider this diagram:

For non-cash payments, the buyer gives his card to the seller.
Next, the seller must verify its authenticity and visually determine whether it is counterfeit; only after this the plastic passes through the terminal using a magnetic tape or microchip. The terminal reads the information by number and sends it to the acquiring bank (this is the organization that owns this device). The automatic system processes information about the cardholder, account limits and makes a decision to carry out the operation or refuse.
If the decision is positive, the acquiring bank accepts the payment and debits the funds from the account. The card and check are returned to the owner, the second copy of which remains with the seller.
Next, the seller submits a report on non-cash transactions to the acquiring bank, and it, in turn, transfers money in the amount of non-cash transactions performed per day to the organization’s current account.
After this, the bank transmits the data to the processing center (a unit that ensures information interaction between settlement participants, that is, banks). It processes information on transactions and sends it to banks for mutual settlements.
The issuing bank pays the acquiring bank independently.

The process of issuing cash through self-service devices - ATMs - looks similar.

How does payment work using a bank card: diagram

In general, what is a payment card? This is a means of non-cash payment that allows its owner to carry out any payment transactions without using cash. At the moment, the most popular are credit cards, that is, cards with a credit limit. They are primarily a spare wallet for their owner, and also allow them to use borrowed funds during a grace period without interest.

Bank card- a tool that allows you to access your personal bank account. Such an account is called a special card account (SCA). It is opened by the bank to reflect all transactions performed by the client using a bank card. Cards will not have their own special card account only if the bank has all plastic cards of the same type “linked” to a single account, or if the card is prepaid.

Bank cards are used for non-cash payments, including via the Internet, as well as for withdrawing cash or replenishing an account through an ATM or cash point. They are also sometimes called credit cards or credit cards, but this generic name is misleading since cards can be either credit or debit.

The type of card, credit or debit, is determined by the account to which it is attached, or which is the main account for the card. A card can be attached to several accounts at once (such cards are called multi-currency cards) and, conversely, several cards can be attached to one account. Some credit institutions allow their clients to replace the main card account with another card account of theirs opened with the same bank.

The card can be issued both on a tangible medium and in electronic form (virtual card).

Any image may be printed on the front side of the card. The card must contain its number and expiration date. If the card is issued on a physical medium, then the name of the bank, the logo of the payment system and the name of the holder (not always) are also applied to it. On the back there is a magnetic stripe and a paper stripe for the holder's signature. Cards of some categories indicate the code CVV2 or CVC2.

A bank card can simultaneously use a number of technologies and work in several payment systems at once. For example, the card has the logo of the Mastercard and Cirrus payment systems, or the card has a magnetic stripe, a chip and is equipped with Mastercard contactless technology.

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A lot has been said and written about bank cards, but we still see how clients confuse debit cards with credit cards, are prejudiced against prepaid “plastic” and have absolutely no idea why virtual cards are needed. Our material today is addressed to those who want to once and for all sort out the types of bank cards and understand which one is intended for what.

In order to talk about the types of bank cards, let’s first define what they are. Many plastic holders mistakenly believe that card and bank account are the same thing. This leads to many common misconceptions - for example, that the loss of a card leads to the loss of funds on it. However, this is not at all true.

In essence, a bank card is just a payment instrument. By itself, it represents a piece of plastic, and only “linking” it to the client’s bank account makes it possible to manage his money using the card. Of course, the loss, blocking or damage of a card does not in any way affect the status of the account (of course, if it, along with other data, does not fall into the hands of fraudsters who can cash out your money).

Almost any of the existing types of cards can be linked to the same account - everything depends only on the tariffs and capabilities of the bank, as well as the wishes of the client himself. Therefore, let's talk about what types of “plastic” can be produced today, and how they differ from each other.

Main types of bank cards

Despite the apparent variety of bank cards that financial institutions offer their clients today, they all have similar characteristics and varieties in their database. The only difference is in the tariffs, commissions, additional services and bonuses offered - but before you compare the financial benefits from cards from different banks, you need to decide on the type of “plastic” that suits you best. As a rule, dividing cards can be done according to several parameters:

By owner of funds in the account– debit, credit, with overdraft, prepaid;
By area of use– local, international, intrabank, virtual;
By payment system– Visa, MasterCard, Golden Crown, American Express, etc.
By level of customer loyalty and volume of services– electronic, standard, gold, platinum, etc.
By data storage method– chip, with magnetic tape, combined.

The combination of different parameters from this list gives the huge assortment of “plastic” that can be seen today in the advertising offers of banks. But it is precisely this abundance that leads to confusion among future card owners - how to choose the right type and not make a mistake. Let us tell you in more detail about the most popular categories of banking plastic.

Debit cards

Debit cards are “plastic” linked to a deposit current account. This is the most common type of bank card - all salary, pension, and payment cards belong to this type.

The main feature of debit cards is that the client has the right to manage exclusively money, pre-posted themselves in a bank account. If this amount has already been spent, it is impossible to withdraw funds from the card until the next replenishment. We list other characteristics of cards with a debit limit:

Such a card can be “linked” to a salary account, a demand deposit account, a deposit account with the possibility of partial withdrawal of funds, an accrued interest account;
A debit card can be issued for a teenager from 14 to 18 years old (with parental consent); for children from 6 to 14 years old, it is possible to issue an additional card to the parent card with restrictions on transactions on it. Persons over 18 years of age have the right to issue debit cards independently.
An application for issuing a debit card is processed as quickly as possible (a few minutes), as it does not require additional permissions or checks. The issuance of the card itself, depending on its type and region, can be instant or take several weeks.
To issue a debit card, you only need a passport and the personal presence of the client, no additional documents are required;
As a rule, there are no upper or lower balance limits for debit cards - the client can either reset the account to zero or place unlimited amounts on it;
Funds in card accounts are protected by a deposit insurance system (with a maximum compensation amount of 1.4 million rubles);
A certain small percentage may be charged on the balance (usually the average monthly amount in the account is considered);
With a debit card you can pay in cash and non-cash: make payments on the Internet and through an online account, withdraw money from ATMs, pay for goods and services at terminals.

Cards with overdraft

One of the most unclaimed banking products is These are cards with overdraft. Many “plastic” holders simply do not understand the mechanism of how such a credit limit works, and therefore refrain from using it. Let's talk about such cards in more detail.

So, an overdraft is a credit to a debit account. In essence, a client who has entered into an overdraft agreement receives the right to pay with a card in excess of the balance available on the account. Main characteristics of a card with an open overdraft:

The credit limit is not open to everyone - banks have a certain list of requirements for the client (age, credit history, financial situation, work experience, etc.);
The main requirement when opening a limit is stable income to the card account. That is why overdrafts are most often offered on salary and pension cards. Compliance with this requirement “overrides” the violation of others - for example, the client may not have the required length of service, but the bank will offer him an overdraft.
In order for an overdraft to be opened, the card must be valid for several months (usually six months or more) - this way the bank will be able to track the frequency of receipts;
Overdraft limits vary depending on the bank and card type. It can be either 30-50% of the average monthly income or 5-6 salaries;
No documents are required to open an overdraft - all necessary documents are provided upon initial account opening. As a rule, it is enough to sign an overdraft agreement on the terms offered by the bank;
Overdrafts can hardly be called profitable - banks open them at fairly high interest rates (25-30% per annum). In addition, in many cases there is an overdraft fee;
To use the limit, it is enough to withdraw an amount greater than the account balance - without additional requests to the bank;
Overdraft repayment occurs automatically - when funds are received in the account, the bank writes them off against the loan.

Overdraft on a debit card is a very convenient type of loan that allows you to gain access to borrowed funds. However, it has several disadvantages - the most significant is that overdraft makes loans addictive, and after a while the borrower cannot do without them.

Credit cards

A credit card is a special type of consumer loan opened to individuals. A card with a credit limit is an opportunity to use bank funds at any time and anywhere. Credit card characteristics:

To issue plastic, it is necessary to open a loan account, which means applying for a bank loan;
The credit card limit is the amount of the loan provided by the bank;
Applying for a card takes from several hours to a week, depending on the speed of consideration of the loan application and its limit;
To issue a card, you need the client’s passport, proof of income, place of work - that is, everything that is needed to issue a regular consumer loan;
Credit cards are issued only to persons over 18 years of age who are in permanent employment;
Card rates can be quite high - up to 40-50% per annum. This is a fee for the “revolvability” of the plastic – that is, the ability to repeatedly use the limit;
Many credit cards also require a debit limit - and in the absence of fees for cash withdrawals, they can be very profitable for the client. As a rule, banks charge interest on the balance of their own funds on credit cards according to the type of deposits, and the rate can be good.

A credit card is a payment instrument that provides the borrower with access to a loan account. It can only have a credit limit, but it can also perform the functions of a debit - it all depends on the tariffs of a particular bank.

Prepaid cards

A fairly new type of plastic cards is prepaid. They appeared only a few years ago and have not yet gained popularity. A prepaid card is a kind of analogue of a gift certificate for stores and beauty salons, but with a much wider range of applications. Main characteristics:

They are issued as a non-personal debit card - that is, they are issued instantly, at the moment of concluding the agreement
This is a bearer card, that is, any owner can pay with it, regardless of who purchased the card;
It has a certain limited limit and does not involve opening an overdraft or replenishing an account (in the latter case there are exceptions);
As a rule, unsuitable for online payments;
You can withdraw cash from the card or use it to pay at store terminals.

Prepaid card – excellent replacement for a gift certificate, cash gifts or salary “in an envelope”. Carrying such plastic is safer and more convenient than cash, but there are a number of restrictions compared to a debit card.

Division of maps by territory of use

Until now, we have only been talking about dividing cards according to the owners of funds, which can be the plastic holder himself, a bank, or a third party who bought a prepaid card. However, choosing a credit or debit card doesn’t stop there – you also need to determine in which territory you need to use plastic. Based on this feature, cards are divided into:

Intra-bank - that is, those that can be cashed only at the issuer’s ATMs. Such, for example, are the cards that some banks issue for cashing out a consumer loan.
Local – cards that can be used only in a limited area (for example, in the country where it is issued). Thus, in Russia there are several local payment systems, with which exclusively local banks cooperate.
International cards belong to major payment systems, and they can be cashed in any country in the world. These cards are useful for travelers - they can be linked to a multi-currency account and make payments in one of several currencies;
Virtual cards are needed for payments on the Internet. They do not exist in physical form and cannot be used in an ATM or offline store. At the same time, a virtual card is an excellent payment instrument for non-cash payments and online purchases.

Types of bank cards and their features are of interest to many owners. To ensure the safety of your money, you should not rely only on the bank.

Payment cards are gaining popularity every year for making payments between people and organizations. It’s very convenient to carry a small rectangle with you and not put money in your pockets. Credit card holders get more options than cash lovers.

Currently, there is a wide variety of plastic cards and payment systems

Plastic cards first began to be used in the United States in the mid-50s of the 20th century. They came to replace inconvenient checkbooks. The magnetic strip, from which information about the account and its owner was read, appeared in the 60s, and the chip - in the 90s.

In 1987, one of the private banks in the USSR issued the first credit card and presented it to Mikhail Gorbachev. Individuals who wanted to become owners of an innovative product had to pay $20,000.
According to statistics, every day around the world, virtual fraudsters steal about $2.5 million from plastic cards. To protect their clients, banks are developing security programs. But scammers are always one step ahead.

A tiny chip in a bank card stores information about the owner and all transactions performed. New types even contain fingerprints and the eye shells of their owner.

Main Differences

Types of bank cards differ in the following characteristics.

Depending on the type of funds (own or borrowed) held in the account:

Debit card. The owner's own money is stored on it. If he needs to make a payment for a completed purchase, this will only be possible with a positive balance. This type of card is in most cases ordered by employers to transfer salaries to their employees.
Credit. This is plastic with the funds that the bank provided to its client for temporary use. There is a limit set on it and you cannot go beyond it. Typically, banks issue cards of this type with an interest-free period (on average 2 months), during which you can deposit the debt into your account without overpayment.
Overdraft. With this credit card, the owner has the opportunity to pay the bill, even if he does not have enough money. The bank that issued the card allows its client to spend more, subject to the condition of returning the funds at a certain percentage.

The MIR payment system was released recently, but is already gaining popularity in the Russian Federation

By class, the types of payment cards differ mainly in the level of service and privileges provided:

classic– the most common cards with standard conditions;
virtual– not issued by hand, used for electronic payments, as well as making purchases via the Internet;
gold– these cards are provided on favorable terms. By paying with them, you can receive a discount or priority services;
platinum– are issued for selected depositors and have a large set of bonuses: service by a personal manager, the ability to pay all over the world, booking tickets, etc.;
black– the most privileged cards issued by a small number of banks. Their holders are the richest clients. It is known that with a black card in hand, you can gain access to a closed event and the right to enter the airport’s lounge area for business clients. In this case, no one will ask about the category of the air ticket.

Bank card payment systems are divided into several types. Their difference is in the geography of use. Some can be paid almost all over the world, others - only in one country:

VISA– focused on transactions in dollars;
MasterCard– on the products of this PS you can transfer money in $ and €;
Many Russians do not know what the differences are between these types of cards. But in fact, MasterCard unites about 1 thousand more banks for payments than VISA;
Maestro– developed in Russia and it is valid only on its territory;
American Express– cards of this type are accepted all over the world, but are practically not used by Russians;
WORLD– the youngest of all existing ones, developed with the aim of replacing foreign payment systems. Cards from this PS have just begun to be released.

You can easily find out which payment system the credit card belongs to, despite the logo located on the front side. If the card number begins with the number 3 - American Express, 4 - Visa, 5 - MasterCard, 6 - Maestro, 2 - MIR.

3D-Secure technology allows you to protect your card from fraudsters as much as possible

To attract more depositors, banks are becoming more sophisticated and coming up with additional opportunities for cardholders:

co-branding– are issued by the bank together with a partner company. The essence of the action is that when paying with such cards, depending on the amount spent, points are accumulated on the account. As they arrive, they can be exchanged for goods or services of a bank partner;
cashback– the point is to return a certain percentage of purchases back to the cardholder.

The main issue that is constantly being addressed by bank security services is the degree of protection of credit cards:

microchip– to pay for goods or services, the card must be inserted into the terminal and the PIN code must be entered;
pay pass– this protection allows you to pay with one touch of the card to the cashier’s reading device. Payments up to 1000 rubles will not require entering a PIN code;
3D-Secure– a special type of protection that helps to protect the card holder as much as possible from fraudsters. Its essence is that when making payments on the Internet, an SMS message with a code is sent to your mobile phone, which must be entered into a special window for successful payment.

Payment production scheme

Many bank card owners have thought about how the non-cash payment system works. The principle is as follows:

The seller, accepting the plastic card from the buyer, inserts it into the terminal, which verifies its authenticity using the credit card number.
The bank that carries out all non-cash transactions through this terminal (acquiring bank) checks the information on the card with the database. If there are no discrepancies, then a request is submitted to the payment system.
The PS, in turn, contacts the bank that issued the card (issuing bank) to obtain information about the account balance or the possibility of purchasing using credit funds. If the money is available, it is transferred to the seller’s bank account.
The terminal prints two receipts with data on the transaction completed, then the seller puts his signature on them. The first copy remains with the cashier, the second is taken by the buyer.
At the end of the day, all information about non-cash transfers is sent to the acquiring bank, which carries out recalculation with the store.

Instant processing of information allows you to quickly perform account transactions

How to avoid falling for scammers' tricks

Almost every Russian has thought about the security of his account. Many are scared off by the idea that money can be used by criminals and they use credit cards only to withdraw cash.

To protect products stored on plastic, you need to know their features and follow the following rules:

It is prohibited to disclose your PIN code to unauthorized persons, even bank employees. When entering at ATMs and terminals, you need to cover the keyboard with your hand. Password information should be hidden not only from nearby people, but also from CCTV cameras.
There is a CVV code on the back of the card. You can use it to pay online. Often in SMS mailings and social networks you are asked to provide this code, which you absolutely cannot do.
Fraudsters are coming up with new ways to steal money from cards. One of them is a special overlay for the ATM keyboard. Before entering your PIN code, you should check whether it is raised. If you find an extra part, it is recommended to calmly leave the store and call the police. As a rule, the pad is guarded by a couple (or three) of dubious individuals standing nearby.